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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2008
We were in compliance with all debt-related covenants at May 31, 2008. Future principal payments of our
borrowings at May 31, 2008 are as follows: $1.0 billion in fiscal 2009, $1.0 billion in fiscal 2010, $2.25 billion in
fiscal 2011, $1.25 billion in fiscal 2013 and $5.75 billion thereafter.
Revolving Credit Agreements
In March 2008, we entered into a $2.0 billion, 364-Day Revolving Credit Agreement with Wachovia Bank, National
Association, Bank of America, N.A. and certain other lenders (2008 Credit Agreement). The 2008 Credit Agreement
supplements our existing $3.0 billion, five-year Revolving Credit Agreement with substantially the same parties that
we entered into in March 2006 (the 2006 Credit Agreement, and together with the 2008 Credit Agreement, the Credit
Agreements). The Credit Agreements provide for unsecured revolving credit facilities, which can also be used to
backstop any Commercial Paper Notes (see above) that we may issue and for working capital and other general
corporate purposes. Subject to certain conditions stated in the Credit Agreements, we may borrow, prepay and
re-borrow amounts under the facilities at any time during the terms of the Credit Agreements. Interest for the Credit
Agreements is based on either (a) a LIBOR-based formula or (b) a formula based on Wachovia’s prime rate or on the
federal funds effective rate. Any amounts drawn pursuant to the 2008 Credit Agreement are due on March 17, 2009
(we may, upon the agreement of the lenders, extend the facility by up to two times in succession). Any amounts
drawn pursuant to the 2006 Credit Agreement are due on March 14, 2011. No amounts were outstanding pursuant to
the Credit Agreements as of May 31, 2008 and 2007. A total of $5.0 billion remained available pursuant to the Credit
Agreements at May 31, 2008.
The Credit Agreements contain certain customary representations and warranties, covenants and events of default,
including the requirement that our total net debt to total capitalization ratio not exceed 45%. If any of the events of
default occur and are not cured within applicable grace periods or waived, any unpaid amounts under the Credit
Agreements may be declared immediately due and payable and the Credit Agreements may be terminated. We were
in compliance with the Credit Agreements’ covenants as of May 31, 2008.
7. RESTRUCTURING ACTIVITIES
Fiscal 2008 Oracle Restructuring Plan
During the second quarter of fiscal 2008, our management approved, committed to and initiated plans to restructure
and improve efficiencies in our Oracle-based operations as a result of certain management and organizational
changes and our recent acquisitions (the 2008 Plan). During the fourth quarter of fiscal 2008, the 2008 Plan was
amended to include the expected effects resulting from our acquisition of BEA. The total estimated restructuring
costs (primarily related to employee severance) associated with the 2008 Plan are $111 million and will be recorded
to the restructuring expense line item within our consolidated statements of operations as they are recognized. In
fiscal 2008, we recorded $41 million in restructuring expenses and expect to incur the majority of the remaining
$70 million over the course of fiscal 2009. Any changes to the estimates of executing the 2008 Plan will be reflected
in our future results of operations.
Acquisition Related Restructuring Plans
During the fourth quarter of fiscal 2008, fourth quarter of fiscal 2007 and third quarter of fiscal 2006, our
management approved, committed to and initiated plans to restructure certain operations of pre-merger BEA (BEA
Restructuring Plan), Hyperion (Hyperion Restructuring Plan) and Siebel (Siebel Restructuring Plan), respectively.
Our management initiated these plans as a result of our acquisitions of these companies in order to improve the cost
efficiencies in our operations. The total estimated restructuring costs associated with exiting activities of BEA were
$231 million, consisting of estimated severance, excess facilities obligations through fiscal 2014 as well as other
restructuring costs. The total restructuring costs associated with exiting activities of Hyperion were $118 million,
consisting of severance, excess facilities obligations through fiscal 2017, as well as other restructuring costs. The
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Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠